Ripple has experienced a remarkable recovery in the last week, climbing over 30% from its lowest point earlier this month.
The price of Ripple (XRP) surged to a high of $2.25 on Sunday, April 14, as renewed interest from buyers followed a significant drop earlier this month.
This rebound is largely fueled by increasing optimism that former President Donald Trump will relax his tariffs. Last week, he suspended several reciprocal tariffs on goods imported from over 70 countries. Over the weekend, he also announced that smartphones would be exempt from any tariff hikes.
Simultaneously, the market responded to the recent motion from the SEC and Ripple Labs to pause appeals and pursue a negotiated settlement. This new turn of events comes a few weeks after the SEC concluded its lawsuit against the company.
Additionally, the price of XRP saw a slight increase following Ripple’s acquisition of Hidden Road in a $1.25 billion transaction. A Ripple executive suggested that they aim to transfer Hidden Road’s $10 billion in daily volume to the XRP Ledger.
XRP price rally meets significant resistance
Despite the recent upswing, XRP is now encountering a significant technical challenge after hitting resistance at the 50-day Exponential Moving Average.
Historically, XRP has had difficulty overcoming this threshold. Compounding the concerns is the emergence of a small evening star candlestick pattern, a bearish reversal indicator characterized by a small bearish body and short upper and lower shadows.
The upper shadow notably aligns with a descending trendline that connects the highest swing points since January 16. It also intersects with the upper boundary of the declining red channel on the chart—another technical signal suggesting a potential pullback toward the lower end of the channel.
Moreover, it has been noted that XRP has formed a head and shoulders pattern, with the neckline positioned at $1.955. The head and shoulders formation is recognized as one of the most bearish patterns in technical analysis.
As a result, any further upward movement will only be confirmed if XRP decisively breaks above both the 50-day EMA and the upper boundary of the descending channel. A full bullish breakout would necessitate a rise above the right shoulder of the head and shoulders pattern, currently at $3.40.
Conversely, a decline below the $1.955 neckline and this month’s low would validate the bearish head and shoulders formation and likely lead to further downward movement.